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New York Forex Report: Hawkish Fed Supports Dollar

New York Forex Report: Hawkish Fed Supports Dollar

New York Forex Report: USD continues to storm higher supported by a raft of positive Fed commentary with Fed’s Williams and Lockhart yesterday noting their support for a possible 2 or 3 rate hikes this year. Williams sees conditions as lining up in favour of such a rate path and pointed specifically to the upcoming meetings, including June, as being very live meetings. Yesterday saw April CPI data print in-line with expectations though markets were hoping for a beat. Traders now await the release of the April FOMC meeting minutes later today.

FX Majors: EuroZone Final Inflation for April came out unchanged following data yesterday that showed an increase in the EuroZone trade surplus. Sterling bounced from initial session lows as average weekly earnings data improved slightly 3/m March YoY to 2.% from 1.9% against expectations of 1.7% though the ex-bonus figure was slightly weaker than expected.

Technical: Prior support at 1.1350 now becomes resistance while this area contains upside reactions, expect a test of 1.1240 as interim support as bears now target symmetry support at 1.1065, only over 1.1450 eases immediate downside bias.Retail Sentiment: BullishTrading Take-away: Short

Technical: .7240 level survives on a closing basis AUD and the anticipated window to correct the recent pull back to test symmetry resistance sited at .7580 is in play. Intraday resistance is sited at .7400

Technical: : Gold has tested and held the 1260 symmetry swing level, 1283 is now resistance for a further leg of corrective price action to set up a test of the pivotal 1240. A close over 1285 suggests early upside reversal targeting a retest of 1303 next

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